Allergan plc (AGN): Incrementally Cautious - Piper Jaffray

Piper Jaffray analyst, David Amsellem, is cautious on Allergen (NYSE: AGN) despite bright spots in the quarter. The company needs incremental products to growth the top line leaving the path to growth murky.

AGN reported non-GAAP diluted EPS of $3.04 on revenues of $3.8B, versus the Street estimates of $3.00 and $3.95B, respectively. There are bright spots such as Botox and Linzess but top-line was pressured in part due to 1Q seasonality. The analyst has concerns regarding the long-term growth trajectory of the top-line given the question marks surrounding key components of the base business (i.e., maturing/declining assets; patent expiries longer term (e.g. Bystolic, Viibryd)).

Value creation is largely dependent on the late-stage pipeline bearing fruit and bolt-on M&A. No change to Neutral rating and reducing the PT to $236 from $238.

For an analyst ratings summary and ratings history on Allergen click here. For more ratings news on Allergen click here.

Shares of Allergen closed at $225.00 yesterday.

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